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2011 (1) TMI 1052 - AT - Income TaxPenalty u/s 271BA - assessee-company had entered into for the first time an international transaction for export of sale of its products with one of its associated enterprise M/s Spin International Inc., a company incorporated in USA and some other unrelated parties as mentioned in the audit report in Form No. 3CEB read with s. 92E of the IT Act - It is thus evident that penalty under section 271BA can be levied if any person fails to furnish a report from the accountant as required under section 92E of the Act - It is a well-settled principle as laid down by the various Courts that the word "may" employed in penal provisions of the Act may be interpreted as discretionary and that discretion is limited within the meaning of such provisions providing the procedure thereof - assessee's accounts are duly audited under section 44AB of the Act and there is no such default as occurred in respect of international business - Held that: delay in submission of the report under section 92E of the Act within the prescribed time by the assessee was due to a reasonable cause and, therefore, penalty is not sustainable on this ground - Decided in favor of the assessee
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